BASF Secures €310 Million Funding to Build World’s Largest Industrial Heat Pump Project, Reducing Greenhouse Gas Emissions by 98%!

BASF, based in Ludwigshafen, Germany, has officially received funding approval from the German Federal Ministry for Economic Affairs and Climate Action to promote the construction of the world's most powerful industrial heat pump project. This marks the beginning of the preparation and construction of the project at BASF's Ludwigshafen site, with the long-term goal of making a significant contribution to the reduction of CO2 emissions. The funding approval was personally granted by Robert Habeck, Germany's Federal Minister for Economic Affairs and Climate Action, to Uwe Liebelt, President of BASF's European Integration Base.

Markus Kamieth, Chairman of the Executive Board of BASF, stressed: "Integrating cutting-edge technologies into the chemical production process is one of the core elements of BASF's green transformation strategy. Our heat pump project is not only highly innovative, it will also be the first in history - the world's first plant dedicated to steam production, and its uniqueness is unmatched worldwide." He further said, "We are deeply honored to receive such strong support from the federal Department, which is undoubtedly a strong vote for our introduction of new processes in the sustainable value chain development of the chemical industry."

The heat pump project is expected to have an annual steam production capacity of up to 500,000 tons, with heat generated primarily from the process gas cooling and cleaning process of one of the two steam crackers on site. Powered by renewable energy sources, the heat pump will produce CO2-free steam, most of which will be used directly for formic acid manufacturing, with the potential to reduce greenhouse gas emissions by up to 98%. In addition, a portion of the CO2-free steam will be supplied to BASF's other production plants through an internal steam network, which is expected to reduce greenhouse gas emissions at the company's headquarters by up to 100,000 tons per year.

Uwe Liebelt, President of BASF's European Integration Site, said: "We are firmly committed to the climate protection goal of achieving net zero CO2 emissions by 2050. At the same time, we are committed to providing our customers with the strongest support on their transformation path. The Ludwigshafen site plays a vital role in this and we look forward to making it Europe's leading, sustainable chemical production site. The electrification of steam power is a key step towards a more sustainable model of energy production for the chemical industry. BASF's integrated production system provides a unique opportunity for the industrial implementation and expansion of new technologies, such as the heat pump in this project."

The heat pump plant, which is expected to be officially operational in 2027, will be built with up to €310 million funded by the German Federal Ministry of Economic Affairs and Climate Action through a "carbon Contract for Difference" funding scheme.

In the chemical industry, steam is regarded as a vital energy source along with electricity. The Ludwigshafen plant makes extensive use of steam in various production processes such as product drying, reactor heating and distillation. According to statistics, BASF consumed about 14 million tons of steam at the site last year. Thanks to efficient heat recovery technology, BASF already meets about half of the steam needs of its main plants, with the remainder relying mainly on natural gas and steam power plants.

As one of BASF's core strategic pillars, green transformation is leading the company to explore and make breakthroughs in multiple dimensions such as the utilization of renewable raw materials, access to renewable energy, and research and development of new technologies. The goal is to significantly reduce the carbon footprint of chemical products by reducing the use of fossil raw materials in energy production. The green transformation practices of the Ludwigshafen plant, such as the construction of the water electrolysis plant and the operation of the electric heating steam cracking demonstration plant, are the vivid embodiment of this strategic concept.